Where Will Navitas Semiconductor Stock Be in 3 Years?

Navitas Semiconductor (NVTS -1.77%), a producer of gallium nitride (GaN) and silicon carbide (SiC) chips, took its investors on a wild ride after it went public by merging with a special purpose acquisition company (SPAC) on Oct. 21, 2021. Its stock opened at $13, soared to a record high of $22.19 a month later, but sank to an all-time low of $1.52 on April 4, 2025. Like many other SPAC-backed start-ups, Navitas disappointed its investors by missing its own growth forecasts and racking up steep losses.

Today, Navitas' stock trades just above $7 a share. It bounced back as its new AI data center partnership with Nvidia (NVDA 0.28%) attracted a stampede of bulls and squeezed out the bears. But could Navitas' stock generate even bigger gains and set fresh highs over the next three years?

Image source: Getty Images.

What happened over the past three years?

GaN and SiC power chips are faster, more power-efficient, and can operate at higher temperatures and voltages than traditional silicon chips. That makes them well-suited for mobile fast chargers, electric vehicle (EV) chargers, laptop adapters, data center power supplies, solar inverters, industrial motor drives, and energy storage solutions.

Navitas generates most of its revenue from its GaNFast Power ICs, which bundle together switching, sensing, control, and security features on a single chip. It expanded into the SiC market through its acquisition of GeneSiC, which mainly supplies SiC power chips for the EV and data center markets, in 2022. Its major customers now include Dell Technologies (DELL -0.07%), which uses GaN/SiC chips in its laptop chargers; the Chinese automaker Changan, which uses its GaN ICs in its on-board EV chargers; and Nvidia, which selected its 800 V HVDC architecture to support its AI workloads at its data centers earlier this year.

Navitas is a fabless chipmaker that outsources its manufacturing to third-party foundries. That capital-light model enables it to focus on developing new chips instead of spending a lot of money on upgrading its plants. That sets it apart from Wolfspeed (WOLF -1.89%), the SiC and GaN chipmaker, which filed for bankruptcy this June after failing to balance the costs of running its own foundries with its soaring debt levels.

Before Navitas went public, it claimed it would grow its annual revenue from $12 million in 2020 to $308 million in 2024. It also expected to achieve a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2023. But here's what actually happened over the past three years.

Data source: Navitas, Marketscreener.

In 2024, Navitas' growth stalled out as the macro headwinds disrupted its orders from its EV, solar, and industrial customers. It also ended a key distribution deal for its SiC products, and it generated more sales from its lower-margin GaN chips instead of its higher-margin SiC chips. That pressure, along with its rising R&D expenses, caused it to remain deeply unprofitable on a generally accepted accounting principles (GAAP) basis as its adjusted EBITDA stayed negative.

What will happen to Navitas over the next three years?

Over the next few years, Navitas' data center deal with Nvidia -- which will be ramped up in 2026 and expanded in 2027 -- could significantly boost its revenue. It should also benefit from the growing adoption of GaN and SiC chips in EV chargers, laptop chargers, and other electronic devices. However, the tariffs against China and its intentional retreat from its lower-margin (but higher revenue) mobile markets could offset those tailwinds and throttle its overall growth.

Based on those expectations, analysts expect Navitas' revenue to grow at a CAGR of 7% from 2024 to 2027 -- but its adjusted EBITDA should stay negative by the final year. And with an enterprise value of $1.27 billion, it still looks expensive at 26 times this year's sales.

Navitas' valuations are likely being inflated by its deal with Nvidia. Expectations for lower interest rates are amplifying those gains by driving more investors toward speculative stocks again. Those higher valuations could cap its gains over the next three years.

If Navitas matches analysts' expectations, grows its revenue by another 7% in 2028, and trades at a more reasonable 10 times its forward sales, its stock price would actually decline 7% to roughly $6.10 and reduce its enterprise value to $1.1 billion. Therefore, its stock could underperform the market until it stabilizes its core businesses. But over the long term, Navitas could still be a good long-term play on GaN and SiC chips as they displace traditional silicon chips.